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Krakow

Polish logistics warehouse purchase for €24.5 million

In March 2019 the Company completed the acquisition of a freehold logistics warehouse near Krakow, Poland for a net value of €24.5 million. The vendors were Panattoni and Marvipol, well-known international real estate developers specialising in logistics.

Only built in 2018 the asset is a freehold, multi-let, facility located in an established logistics area alongside the A4 motorway giving access to Germany, Wroclaw and Silesia and also benefitting from its proximity to Krakow and Katowice international airports. The building provides 31,000 square metres of warehousing and 4,000 square metres of office space with ample loading docks, a free height of 10 metres and a floor load capacity of 5,000 kilograms per square metre. The flexible structure allows for future reconfiguration if required.

The warehouse has an attractive income profile being fully leased to nine tenants, all with CPI indexed leases and with a weighted average unexpired lease term of 4.6 years (calculated as at 1 March 2019). Currency risk to the Company is limited with all rents payable in Euros. Tenants include packaging and transportation company DS Smith and Lynka, a leading provider of textile printing services.

Krakow is the second largest city in Poland with approximately 760,000 inhabitants and is characterised by a relatively affluent population, the dominance of added value industries and a strong education infrastructure and business friendly policies. It is located in the south near the border with the Czech Republic and is, after Warsaw, considered to be Poland’s most important and fastest growing economic centre. Warehousing remains scarce in the area with an undersupply of logistics assets due to the scarcity of available land, fragmented ownership and often complex permitting.

The Polish logistics market is strong and currently ranked third in Europe in terms of new developments benefitting from being the largest economy within the Central and Eastern European block with a lower cost labour force.

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Legal Notice

NMPI Status

The Company currently conducts its affairs so that securities issued by Aberdeen Standard European Logistics Income PLC can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investment products (NMPIs) and intends to continue to do so for the foreseeable future.

The Company’s securities are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are securities in an investment trust.

Pre-investment Disclosure Document (PIDD)

The Alternative Investment Fund Manager Directive (“AIFMD”) requires Aberdeen Standard Fund Managers Limited, as the alternative investment fund manager of Aberdeen Standard European Logistics Income PLC, to make available to investors certain information prior to such investors’ investment in the Company.

The AIFMD is intended to offer increased protection to investors in investment products that do not fall under the existing European Union regime for regulation of investment products known as “UCITS”.

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